US: A more protectionist global landscape - NBF

According to Angelo Katsoras, Research Analyst at NBF, while the U.S. and China will take measures to walk back from a full-blown trade war, heightened trade tensions between the two will be the new normal for the foreseeable future.

Key Quotes

“A game changer in America’s favour would be if many of China’s major trade partners (i.e., Japan, the EU, and South Korea) joined forces with the United States against its trade practices. The United States is not the only country to have complained about China’s trade policies.”

“In an effort to prevent this alliance forming against it, look for China to announce the opening of more sectors to foreign businesses followed by American accusations that they have not gone far enough. Or simply put, the trade road ahead is set to get bumpier.”

“In this new global environment, investors must do more than simply analyze a country’s or a company’s fundamentals. In assessing a country, they must also look at any ongoing or potential future tensions with trading partners, as such conflicts can significantly impede access to key markets.”